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Lalla is the daughter of Edward Ward, the 7th Viscount Bangor, and his fourth wife, Marjorie Alice Banks. She has a brother, Edward Nicholas Ward, two years her junior, and a half-brother, William Maxwell David Ward, who is three years her senior and the 8th Viscount Bangor. Lalla Ward is herself more properly addressed as the Honourable Sarah Ward.

Following her exit from the series in 1981, she married her co-star, actor Tom Baker, that December, but the marriage lasted only sixteen months. (Once, when asked what her favourite monster on Doctor Who was, she quipped, "Tom Baker.")

Later, Douglas Adams, who had worked with her on Doctor Who, introduced her to his friend Richard Dawkins, biologist and author of such books as The Selfish Gene and The Blind Watchmaker, whom he had met after Dawkins sent him a fan letter. They met at Adams' fortieth birthday party in 1992 and married the same year.[1] They then separated in 2016.

Ward illustrates Dawkins' books. She also wrote two books on knitting in the 1980s, and one on embroidery (in one of these books, Louise Jameson models some of Ward's creations). She created the 1985 Shell Calendar, with embroidered pictures of sea birds.